"Senior policymakers realise that, because of the leverage in the system, stock market declines create a ripple effect that could damage the wider economy, so this is all about preventing a spreading panic that could trigger a systemic crisis," says Lu Ting, head of research at Hong Kong-listed mainland brokerage HTSC.

"Senior policymakers realise that, because of the leverage in the system, stock market declines create a ripple effect that could damage the wider economy, so this is all about preventing a spreading panic that could trigger a systemic crisis," says Lu Ting, head of research at Hong Kong-listed mainland brokerage HTSC.